Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Poor Institutions, Rich Mines
T2 - Resource Curse in the Origins of the Sicilian Mafia
AU - Buonanno, Paolo
AU - Durante, Ruben
AU - Prarolo, Giovanni
AU - Vanin, Paolo
PY - 2015
Y1 - 2015
N2 - With weak law‐enforcement institutions, a positive shock to the value of natural resources may increase demand for private protection and opportunities for rent appropriation through extortion, favouring the emergence of mafia‐type organisations. We test this hypothesis by investigating the emergence of the mafia in twentieth century Sicily, where a severe lack of state property‐rights enforcement coincided with a steep rise in international demand for sulphur, Sicily's most valuable export commodity. Using historical data on the early incidence of mafia activity and on the distribution of sulphur reserves, we document that the mafia was more present in municipalities with greater sulphur availability.
AB - With weak law‐enforcement institutions, a positive shock to the value of natural resources may increase demand for private protection and opportunities for rent appropriation through extortion, favouring the emergence of mafia‐type organisations. We test this hypothesis by investigating the emergence of the mafia in twentieth century Sicily, where a severe lack of state property‐rights enforcement coincided with a steep rise in international demand for sulphur, Sicily's most valuable export commodity. Using historical data on the early incidence of mafia activity and on the distribution of sulphur reserves, we document that the mafia was more present in municipalities with greater sulphur availability.
U2 - 10.1111/ecoj.12236
DO - 10.1111/ecoj.12236
M3 - Journal article
VL - 125
SP - F175-F202
JO - Economic Journal
JF - Economic Journal
SN - 0013-0133
IS - 586
ER -